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Re: Tax File Number length

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Hi,  One of our employees has supplied a TFN of only 8 numbers is this correct as our system only excepts 9 numbers

 

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Hi @susansmith60

 

Tax file numbers for individuals are generally 9 digitis long, non-individuals can be 8 digits however as you know an individual must quote their own VALID TFN.

 

 

As this could be a simple mistake on behalf of your employee, the better approach may be to simply ask your employee to check their TFN as they should have some documentation from the ATO with a TFN on it, such as a notice of assessment.   

 

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to the ATO.

 

When an individual fails to provided a valid TFN you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply:

  • they have not quoted their TFN
  • they have not claimed an exemption from quoting their TFN
  • they have not advised you that they have applied for a TFN or have made an enquiry with the ATO.

Information relating to this issue is here - https://www.ato.gov.au/rates/fortnightly-tax-table/?page=2

 

ATO phone 13 28 61

 

 

1 REPLY
Highlighted

Best answer

ATO Certified

MVF
Devotee

Replies 0

Hi @susansmith60

 

Tax file numbers for individuals are generally 9 digitis long, non-individuals can be 8 digits however as you know an individual must quote their own VALID TFN.

 

 

As this could be a simple mistake on behalf of your employee, the better approach may be to simply ask your employee to check their TFN as they should have some documentation from the ATO with a TFN on it, such as a notice of assessment.   

 

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to the ATO.

 

When an individual fails to provided a valid TFN you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply:

  • they have not quoted their TFN
  • they have not claimed an exemption from quoting their TFN
  • they have not advised you that they have applied for a TFN or have made an enquiry with the ATO.

Information relating to this issue is here - https://www.ato.gov.au/rates/fortnightly-tax-table/?page=2

 

ATO phone 13 28 61

 

 

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